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Question re PPOR Finance

Discussion in 'Finance & Banking' started by coopranos, 23rd Jul, 2007.

  1. coopranos

    coopranos Well-Known Member

    11th Oct, 2006
    I have a PPOR with a P&I loan and a couple of Lines of credit attached to it.
    When we got the loans we were double income no kids, we recently have a baby and the mrs is on maternity leave.
    Does anyone know if it is possible to keep the existing loans (P&I + LOCs) in place if we sell the house and then use the proceeds to purchase another PPOR? The P&I is on just under 6.5% fixed for 3 years, so dont want to lose that if I dont have to, plus I am unsure if we would qualify for finance if we had to reapply for a new loan on one income, so if we can just keep the existing loan open that would be ideal.
    Greatly appreciate any input, or let me know if Im not quite clear!
  2. Rolf Latham

    Rolf Latham Well-Known Member

    15th Aug, 2005
    Gold Coast and Sydney
    Hiya Coops

    2 options

    1. Portability with back to back settlement. This means selling an buying your old and new place on the same day. Otherwise known as a substution of security.

    2. Term deposit. Many bank will allow you to pool ur cash into a TD, and the lender will take a LIEN over this and allow u to continue to make repayments on your "mortgage" as normal. Only a short term solution though !